The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The difference between the marginal cost curve and the marginal social cost curve equals
A) marginal private cost.
B) private cost.
C) external cost.
D) marginal external cost.
E) Coasian cost.
D
You might also like to view...
Which of the following variables is used to determine a country's economic growth?
i. real GDP ii. wages iii. inflation A) ii and iii B) i, ii and iii C) i and ii only D) i only E) i and iii
What does the assumption of perfect knowledge include?
What will be an ideal response?
Fiscal policy under the Reagan administration was intended to: a. stimulate the economy by decreasing taxes in order to increase consumption
b. increase tax revenues by increasing the tax rate. c. balance the budget by increasing defense spending and increasing taxes. d. stimulate the economy by decreasing taxes in order to increase aggregate supply. e. stimulate the economy by increasing government spending in order to increase aggregate supply.
It may be necessary to ration a good whenever ___________ exists.
A. a surplus B. excess demand C. excess supply D. None of these choices are correct.